British-American Dual Citizenship

Even though dual citizenship has numerous benefits, there are also disadvantages such as:

• You may be required to pay taxes on your income coming from both countries.
• You may be entitled to little or no diplomatic assistance from either country when you are in the other country where you hold citizenship.
• You could need to have a separate credit rating in both countries.
• There may not be reciprocity between the two countries for driving licenses and other important certifications

Your application for dual citizenship as a British national will only be approved in the following instances:

• You are naturalizing as a citizen of the United States and retaining your citizenship of a foreign country.
• You retain nationality in your origin country after naturalizing as an American citizen.
• You were born outside of the United States, and one or both of your parents are American nationals, based on the laws of the foreign country.
• You were born in the United States of America, and one or both of your parents are nationals of other countries.

As an American national, you are eligible to apply for British citizenship based on your circumstances.

If you do not qualify for British citizenship through their parents or ancestry, the general way to become a British citizen is to follow the ILR. This involves obtaining the correct visa and, in most cases, living in the UK for five years. Once ILR status is granted, you must then reside in the country for a further 12 months to then apply for British citizenship.

Other citizenship eligibility statuses include:

• Having a parent with British overseas territory citizenship
• Having another type of British nationality
• Being stateless
• Being a Chagossian descendant – a direct descendant of someone born in the British Indian Ocean Territory
• You previously renounced your citizenship

There is no set application form just for applying for dual citizenship and you will need to apply using the same process as anyone else applying for US citizenship.  Before you apply as a British national, you must ensure that you satisfy all naturalization requirements. An exception is if you qualify for American citizenship through a parent.

You can then start the naturalization application process by submitting Form N-400, formally known as “Application for Naturalization,” to U.S. Citizenship and Immigration Services (USCIS). Below are the documents that must be submitted with the N-400:

• A photocopy of both sides of your Permanent Resident Card (formerly known as the Alien Registration Card or “Green Card”)
• A check or money order for the application fee and the biometric services fee
• Two identical color photographs

After submitting and paying the application fee of $725 (plus the biometric fee), an interview will be scheduled. You will receive a decision on your application shortly after the interview has taken place.

The application process for US citizenship can be very challenging and you may feel overwhelmed. It is advisable to seek the assistance of an immigration expert to help you with the application process. Contact IAS today at +1 844 290 6312 or contact us online for immediate assistance.

What is Double Taxation?

Double taxation occurs when the same income is taxed twice. Since British-American dual citizenship requires tax return filing, you may be at risk of double taxation.

For instance, if you are a British-American dual citizen working in the UK for a British employer, you will pay UK taxes. In addition, your worldwide income earnings – including the UK source income that has already been taxed by the British government – could be eligible to be also taxed by the US government.

However, the UK and the US have agreed to a tax treaty to nullify each country’s income tax laws. This means have to pay tax twice on the same income. The following types of income are covered by the double taxation agreement:

• Annuities
• Royalties
• Interest from banks and building societies
• UK dividends
• Most work pensions

Who is an Accidental American?

An accidental American is an individual who is considered an American citizen but does not feel connected to the USA. This is usually because they have lived and worked in another country their entire lives.

Another possibility is that they may have been born in America while their UK parents were on vacation or employed there. You must understand that if you were born in the United States or have at least one US parent, you may be considered a British-American dual citizen.

Accidental Americans living outside of the US are unaware of the US tax obligations linked to their American citizenship until they have issues, such as opening a non-US bank account with their status as an American citizen.

Some accidental Americans could face substantial civil penalties and criminal persecution if they fail to meet income tax and reporting requirements. To avoid this situation, you must either verify that you do not have any outstanding tax obligation or catch up on your US taxes – this can be done via the Streamlined Foreign Offshore Procedures. These help American dual citizens comply with their US tax filing to reduce any potential penalties.

There can be disadvantages to holding two passports when traveling abroad. As a dual citizen, you should note that the British government cannot grant you diplomatic help when you are in the country where you hold citizenship.

What this means is that if you encounter any difficulties while in the U.S., the UK government may not be able to help you. You are required to gain assistance directly from the U.S. since you are regarded as a citizen.

In the same vein, the American authorities have limited consular assistance that can be provided when you are in the country that you’re a citizen of, especially if you did not use your U.S. passport to enter the country.

Additionally, the U.S. government has made it mandatory that when entering or leaving the U.S., you have to use your American passport.